Tokyo Stock Exchange
16:23 JST, July 26, 2024
TOKYO, July 26 (Reuters) – Japan’s Nikkei stocks rose on Friday, ending a seven-day losing streak, as investors bought stocks that looked undervalued after a long slide.
The Nikkei rose 0.5% at the midday break, recovering from a three-month low reached in the previous session. The index is expected to fall 5% for the week.
The broader Topix rose 0.58% to 2,725.55 and is expected to fall 4.72% for the week.
The market fell too much, causing investors to buy back shares. Still, heavyweights in chip-related stocks remained weak, which put a damper on gains, said Shuutarou Yasuda, market analyst at Tokai Tokyo Intelligence Laboratory.
But on the positive side, the market bought companies that reported a positive outlook. With earnings season continuing beyond next week, a strong corporate outlook is expected to support the Nikkei.
Hino Motors rose 11.76% to become the biggest percentage gainer on the Nikkei, after the truck maker narrowed its quarterly net loss.
Canon rose 8.29% after the camera maker reported on Thursday that annual operating profit rose to 465 billion yen ($3.02 billion), up 24% from a year earlier.
Fujitsu rose 10.51% after the computer maker said Thursday its quarterly profit quadrupled to 16.8 billion yen.
However, Nissan Motor posted further losses, falling 2.8% after the automaker lost 7% on Thursday as its annual forecast was cut.
Renesas Electronics fell 5.55%, making it the biggest percentage loser on the Nikkei. The chipmaker fell 13.6% on Thursday after reporting a 29% drop in net profit for the six months through June.
Shares of heavy-duty chip companies fell, with Tokyo Electron and Advantest down 2.29% and 1.65% respectively.
Of the 225 Nikkei components, 168 stocks rose and 57 fell.
($1 = 153.9500 yen)
